CySEC reaches €20k settlement with ZFN EUROPE

According to report, the Cyprus Securities and Exchange Commission (CySEC) announced today that it has entered into a settlement agreement with ZFN EUROPE Ltd for the amount of €20,000. This settlement resolves a regulatory inquiry into ZFN Europe‘s compliance with Cyprus’s Investment Services and Activities and Regulated Markets Law of 2017, as amended.

Regulatory Authority and Settlement Power

Under Article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009 (as amended), CySEC has the authority to settle any actual or potential breaches of its supervised legislation when there are reasonable grounds to believe an infringement occurred. Settlement agreements allow the regulator to address less severe violations efficiently, reserving formal disciplinary measures for more serious or repeated infractions.

Nature of the Alleged Violation

The settlement with ZFN Europe relates specifically to a possible breach of Article 5(1) of the Investment Services and Activities and Regulated Markets Law of 2017. Article 5(1) mandates that anyone offering investment services or carrying out investment activities “as a regular occupation or business on a professional basis” must obtain CySEC authorisation before commencing those services

Period of Investigation

CySECs supervisory review covered the period December 2023 to June 2024, during which it assessed whether ZFN Europe had operated without the necessary licence. While the regulator did not publicly specify the precise services under scrutiny, the focus on Article 5(1) indicates that the company may have provided investment-related activities before being duly authorized.

About ZFN Europe Ltd

ZFN Europe Ltd (Registration No ΗΕ 411334) was incorporated in July 2020 and is registered with the Cyprus Registrar of Companies. It operates as a service provider within the ZenFinex group—trading under names such as Taurex and ZenFinex—and holds its registered office at Naxou 1, 1st Floor, Flat 103, Strovolos, Nicosia, Cyprus.

What This Means for Firms and Investors

• Firms should conduct regular internal reviews to confirm their activities align with their licences and notify CySEC promptly of any changes or expansions.
• Investors are encouraged to verify a firms registration status on the official CySEC website or through public registries before engaging in any investment services.

By resolving less severe infractions via settlement, CySEC balances efficient enforcement with proportionality, reserving heavier sanctions for more serious misconduct. This case serves as a reminder that even newer market entrants—such as ZFN Europe—must secure proper authorisation before offering any investment services in Cyprus.

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